Why you need a Chief AI officer

Here is why I come down on the side that companies do need a Chief AI Officer. All businesses are data
companies but most dont realize it yet.

Amazon was once an ecommerce company that built a massive competitive advantage around data and
technology. Its growth rate continues to be enormous and it spins off billions in operating cash that it
reinvests right back into long term growth. Because of this strategy, it competes in businesses as diverse
as ecommerce, marketplaces, fulfillment, grocery delivery, consumer electronics, grocery retail, local
deals (LivingSocial), streaming media, on-demand media rental.

Currently, every competitive advantage can be bought, from brand to marketing to logistics to product
to distribution. Some are most expensive than others but all can be copied.

In all its forms, machine learning, AI especially with analytics is already proving transformative. AI is
critical to maximizing data, for automating and for extending your reach. It will soon be harder to defend
your position in your industry without AI being fully integrated into business strategy than even late
adopters of PCs or the internet found

AI is different than other technologies because it requires a revolutionary thought. For that reason, it
will inspire fear and misunderstanding among some sectors. The Chief AI officer needs to be the bridge
between technology and the business.

For AI to be right it needs to be a strategic advisor to the CEO and the leadership team. A new critical
skill is translating business needs into strategy and strategy into technical requirements. The critical
question is who does the person report to. This isnt as easy as it seems.

Most CIOs will struggle to understand this fast-evolving technology well enough to see the full potential
and keep the wheels on the IT bus moving. AI will threaten a lot of turf. Some CIOs judge their
importance based on budgets and resources. But, at its best, machine learning can wipe that away. If it
reduces IT then does that create a conflict?

The CIO job is too big. CRO own sales and marketing and touch product, CFOs run finance but CIOs keep
everything running. It is time to split the job let part of it focus on information systems and
infrastructure and user services but separate out the strategic, forward looking business enablement.

CIOs should welcome this role. The amount of money at stake isnt that large compared to many IT
initiatives but the consequences of missed opportunity are higher. The CIO cannot afford to find their
firm is suddenly at a massive competitive disadvantage to some more innovative and agile competitor.

The truth is most business execs are cautious and incremental in nature. The fear and ramifications of
failure are greater than the incremental rewards of being first. But here again AI is different. When it
makes a transformative change, the impact can be sudden.
Also, the CAIO should drive the data and analytics foundational projects to get things done. It isnt
enough to hand this to your CIO. Because it isnt a transformative technology it is a transformative
business strategy. You need this person to cross lines and be the internal advocate for machine learning

The CAIO isnt a substitute for a data scientist. You still need a data scientist. Let that person focus on
research and innovation.

Perhaps the most critical determinant of who leads in your space in 5 or 10 years may come down to
their ability to attract AI talent and leverage them fully. To allow AI to transform your business, you
need the right people with the right incentives and influence to charge forward.

About the author

Michael Zammuto

Cloud Commerce Consulting